Is this brand ephemeral? A multivariate tree-based decision analysis of new product sustainability

Authors:
Katsutoshi Yada;Edward Ip;Naoki Katoh
Affiliations:
Faculty of Commerce, Kansai University, Osaka, Japan;Department of Biostatistical Sciences, Wake Forest University School of Medicine, USA;Department of Architecture and Architectural Engineering, Kyoto University, Japan
Venue:
Decision Support Systems
Year:
2007

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Abstract

Decision tree methodology has become an increasingly important tool set in the field of decision science. We develop a multivariate, tree-based decision system for a new application: the determination of whether a newly launched consumer product should be allowed to continue in a highly competitive market. The system is designed to overcome a shortcoming-the inability to capture multivariate interactions-of traditional decision methods. We apply the proposed method to an instant noodle sales data set that contains 38 million transactions, and compare results across several methods.